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Bank of Canada Holds at 2.25% — Again: What It Means for Your Mortgage and Markets Today

  Wednesday, June 10, 2026  |  Canadian Money Brief It's official: the Bank of Canada held its overnight rate steady at 2.25% this morning — the fourth consecutive hold in 2026 , following identical decisions in January, March, and April. The move was widely anticipated, but the language in today's statement and Governor Tiff Macklem's 10:30 a.m. press conference are delivering the real signal: the BoC is watching the Middle East conflict carefully, is not yet alarmed by inflation, but is making clear that rate hikes remain on the table if energy prices push inflation higher. Here's the full picture — BoC reaction, Canadian markets, Wall Street, oil, and global moves. 🏦 Bank of Canada: Holds at 2.25% — But With a Warning The Bank of Canada's statement this morning was brief but pointed. The Governing Council noted that "economic activity in Canada has been weak and uncertainty about US trade policy persists," while also flagging that "the conflict ...
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Trade War Looms: Economists Brace for Impact as Loonie Weakens


As the specter of a trade war looms large, economists and market strategists are sounding the alarm, warning of potential repercussions for the Canadian economy. The recent announcement of sweeping tariffs by U.S. President Donald Trump on Canadian goods has sent shockwaves through financial markets, causing the Canadian dollar, or "loonie," to slide to its lowest level since 2003.

Top economists predict that if the tariff war persists, Canada's economy could face its most severe shock since the COVID-19 pandemic. The loonie's decline is expected to exacerbate inflationary pressures and increase the unemployment rate, potentially pushing the economy into a recession. 

Chief Economist Beata Caranci and Senior Economist James Orlando anticipate a "sharp negative reaction" in North American equity markets and further weakening of the loonie, which could drop as low as 65 US cents. The Bank of Canada may be forced to cut interest rates to mitigate the economic impact.

As the situation unfolds, market strategists advise investors to brace for volatility and consider safe-haven assets to weather the storm. The coming weeks will be crucial in determining whether negotiations can avert a full-blown trade war and stabilize the loonie.




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